In some cases, homeowners move to new residences, but keep their present homes and rent them out. Homeowners who are considering this are probably already aware of the financial risks and rewards of doing so. However, they should also know that renting out a personal residence carries potential tax benefits and pitfalls.
A new law was recently passed that will help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29, 2022. A sidebar discusses changes to Achieving a Better Life Experience (ABLE) accounts available to certain disabled taxpayers.
Running a business requires that strong, supportable records be kept. Every expense that appears on a tax return might have to be defended if the IRS decides to audit the return. And failing to operate in a businesslike manner and keep good records might lead the IRS to deem the activity a hobby rather than a business. This means expenses may be limited or disallowed. This article and a sidebar illustrate how the IRS (and sometimes the courts) view business records, what they’re looking for and what’s considered acceptable substantiation.
Right now, taxpayers may be more concerned about their 2022 tax bills than about how to handle their personal finances in the new year. However, as they deal with their annual tax filing, it’s a good idea to also familiarize themselves with pertinent tax-related amounts that may have changed in 2023. This article poses six key questions about such amounts, including those related to retirement planning and the itemized deduction.
The IRS issued Schedule K2 and K3 beginning in tax year 2021 requiring S corporations and partnerships to report additional information related to certain foreign transactions.
For many people, December 31 means a New Year’s celebration. However, from a tax perspective, it means thinking about which filing status a taxpayer will use for that year’s tax return. This article reviews the five statuses. A sidebar looks at whether a married person can file as “head of household.”
The IRS issued Schedule K2 and K3 beginning in tax year 2021 requiring S corporations and partnerships to report additional information related to certain foreign transactions.
On April 15th, 2022, Wisconsin Governor Tony Evers signed the 2021 Wisconsin Act 258 into law.
Many people want to make gifts of cash and stocks to loved ones during the holidays and at year-end. If properly used, the annual exclusion allows you to give to family members and loved ones and reduce the size of your taxable estate, within limits. This article provides details.
What are the tax implications when a taxpayer who owns a vacation home rents it out? The answer depends on various factors, such as the amount of time rented out and the number of days used by the owner. The calculation of taxable income can be complex. This article explains.
